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2018 Medicare Premiums, Coinsurance and Deductibles

Updated December, 2017

The Centers for Medicare and Medicaid Services (CMS) has announced the new Medicare premiums, deductibles, and coinsurance amounts for 2018.

Most people who have their Part B premiums deducted directly from their Social Security benefits will pay $134 or less. The exact amount varies for different individuals. You should check your Social Security statement or establish and check an online Social Security account for the exact amount if you fit in this category. The “standard” premium is $134, but a provision in the law called the “hold-harmless” provision says that Social Security benefits cannot be lowered if the Part B premiums rise faster than the Social Security COLA (2% in 2018).

The standard Medicare Part B premium (single individuals with income of $85,000 or less; joint filers with income of $170,000 or less) is $134 (or higher) for people described below (mainly 2018 first time enrollees and those who are on Medicare but not drawing Social Security benefits).

Here are the essential Medicare figures:

Part B standard premium: $134

Part B deductible: $183

Part A deductible: $1,340 for hospital stays during initial 60 days

Co-payment for hospital stay days 61-90: $335/day

Co-payment for hospital stay days 91-150: $670/day

Patient responsible for ALL Part A costs beyond day 150 (thus the importance of a good Medicare supplemental policy)

Skilled nursing facility co-payment, days 21-100: $167.50/day for days 21-100

As directed by 2003 Medicare law and subsequent law, higher income beneficiaries or those fitting one of five groups below will pay higher Part B premiums. Social Security will base the premiums on reported income (for federal tax purposes) from two years previously (e.g., 2016 income for 2018 premiums).

If you are in one of these five groups you will pay $134 (unless your income throws you to an even higher group below). Here are the five groups:

Group I

You first enroll in 2018

You don’t draw Social Security benefits

You are billed directly for Part B premiums

Your modified adjusted gross income is above one of the amounts below:

Income Groups

Individuals with annual incomes between $85,000 and $107,000 and married couples with annual incomes between $170,000 and $214,000 will pay in 2018 a monthly premium of $187.50.

Individuals with annual incomes between $107,001 and $160,000 and married couples with annual incomes between $214,001 and $320,000 will pay in 2018 a monthly premium of $267.90.

Individuals with annual incomes between $160,001 and $214,000 and married couples with annual incomes between $320,001 and $428,000 will pay in 2018 a monthly premium of $348.30.

Individuals with annual incomes of $214,001 or more and married couples with annual incomes of $428,001 or more will pay in 2018 a monthly premium of $428.60.

Part A Premiums

Because most people have 40 or more quarters of covered employment, they do not pay Medicare Part A premiums. Other people may “buy-in” to Medicare Part A – the most commonly effected individuals are those with disabilities who do not have a significant work history. The buy-in rates for Part A are up to $422 per month.

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About Bob Mason

Robert A. Mason, JD, CELA, CAP, is owner of Mason Law, PC, of Charlotte and Asheboro, North Carolina, a law firm devoted exclusively to legal issues involving the elderly and the disabled. Read More >>